Purpose of IBC is to maximise value for creditors

Senior Advocate . Harish Salve along with advocate Mahesh Agarwal concluded arguments for Hinduja-IIHL in the Reliance Capital case on Thursday.

It was argued that the purpose of insolvency code is not to create an avenue for lucrative investments.

The Insolvency and Bankruptcy Code (IBC) was introduced when the banks were in bankruptcy themselves and they required funding by the government in order to improve their share capital at the cost of the taxpayers.

The Committee of Creditors (CoC) should be allowed to recover their dues. Since these are public monies and Torrent cannot enrich itself at the cost of Indian taxpayers.

The CoC should be allowed to maximise values by calling for revised bids.

The Coc has found that the NPV declaration by Torrent was incorrect. The CoC also found Torrent to be non-compliant whereas IIHL has not received any communication from the CoC that its plan is not compliant.

20230119-204404

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